Data Table Static Budget (1,000 recliners) Actual Results (980 recliners) Sales (1,000 recliners x$ 515 each) (980 recliners x$ 495 each) 515,000 485,100 Variable Manufacturing Costs (6,000 yds. @s 8.50/yd) (6,143 yds. $ 8.30/yd.) (10,000 DLHr@$ 9.30/ DLHr) (9,600 DLHr$ 9.50/ DLHr) (6,000 yds.S 5.20/ yd.) (6,143 yds. @ $ 6.60/ yd) Direct Materials 51,000 50,987 Direct Labor 93,000 91,200 Variable Overhead 31,200 40,544 Fixed Manufacturing Costs Fixed Overhead Total Cost of Goods Sold Gross Profit 60,600 235,800 279,200 $ 62,600 245,331 239,769 bu Requirements estc ud Prepare a flexible budget based on the actual number of recliners sold Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead cost, variable overhead efficiency, fixed overhead cost, and fixed overhead volume variances. Round to the nearest dollar 1. 2. 3. Have Preston's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how Preston's managers can benefit from the standard costing system 4. Print Done elds and then continue to the next question materials. The company's performance report includes the following selected data Amounts Fixed M Costs Preston Recliners manufactures leather reciners and uses fiexible budgeting and a standard cost system. Preston allocates overhead based on yards of direct EEE (Click the icon to view the selected data) Read the s. The company's performance report includes the following selected data Fixed Manufacturing Costs Fixed Overhead Total Cost of Goods Sold oss Proff Requirement 2. Compute the cost variance and the efficiency variance for direct matenals and for drect labor. For manufacturing overhead, compute the variable overhead cost, variable overhead etficiency, fixed overhead cost, and fixed overhead volume variances. Round to the nearest dollar Begin with the cost variances. Select the required formulas, compute the cost vanances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U), (Round your answers to the nearest whole dollar Abbreviations used AC actual cost, AQ actual quantity, FOH fixed overhead, SC standard cost, so-standard quantity) Direct materials cost variance Direct labor cost variance Next compute the efficiency variances Select the required fo fixed overhead. SC standard cost, so-Standard quantity ) Choose from any list or enter any number in the input fields and then compute the efficiency variances for direct materials and direct labor, and identify whether each the nearest whole dollar Abbreviations used AC actual cost AQ actual quantity. FO (F) or unfavorable (U) (Round your answers to to the next question. . Preston Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Preston allocates overhead based on yards of direct materials. The company's performance report includes the following selected data EE (Click the icon to view the selected data) Formula riance Direct materials efficiency variance Direct labor efficiency variance Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable identify whether actual quantity, FOH -foxed overhead SC standard cost SQ standard quantity, VOH H vanable overhead) each variance is favorable (F) or unfavorable (U) (Round your answers to the nearest whole dollar. Abbreviations used AC actual cost, AQ- VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume vanances Select the required formulas, compute the fixed overhead cost and volume variances, and identity whether each vanance s favorable (F or unfavorablo (Round your answers o the nearest wh le dollar Abbre at ons used AC = actual cost AQ-actual quantity, FOH- fixed overhead, SC standard cost, SO - standard quantity) Variance FOH cost variance FOH volume variance ll next question 99+ Preston Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Preston allocates overhead based on yards of direct materials The company's performance report includes the following selected data EEE (Click the icon to view the selected data,) Read the FOH cost variance FOH volume vanance Requirement 3. Have Preston's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a materials cost Y job controlling materials and labor costs. The Y direct e and direct labor efficiency variance help offset the | direct labor cost variance and direct materials efficiency variance Managers ,1 job controlling overhead costs as evidenced by the fact that I "I of the overhead variances are Requirement 4. Describe how Preston's managers can benefit from the standard costing system Choose from any list or enter any number in the input fields and then continue to the next q 99